An Employee Referral Program offers a host of benefits for employers, not the least of which are saving the company both time and money.
These bottom-line results, however, are just the beginning. The real worth of a referral program comes from its post-hiring advantages.
An effective Employee Referral Program serves not only to acquire and retain successful new talent but also to energize and engage your existing employee base. It creates a corporate culture that values employee interaction, encourages performance and drives the overall success of the business.
4 Ways an Employee Referral Program Improves Culture
Whenever an employee makes a referral to your company, they make a personal investment in your business. This creates an emotional tie between both your company and their referral, someone with whom they already have an emotional attachment. They care about the person they’ve referred. Employees want their referrals to have a positive experience because it will reflect upon them, and should their referrals be hired, they want to see them succeed. An employee who refers their acquaintances for a position has a genuine, vested interest in their success.
Team Builders = Team Players
Employees who assist in your recruitment efforts feel more valued as they develop a greater sense of engagement with your company. Their involvement empowers them, and their contributions engender a feeling of teamwork that is often reflected in their attitude toward others in the workplace.
Ready-made Support System
Leaving the comfortable confines of an existing job can be an intimidating and stressful experience, but referred employees will often make this transition more easily. They know from the outset that they have someone in their corner to help them adjust and get the job done. Having a team member support them improves performance, increases confidence and morale and leads to stronger engagement.
Quality Employees Have Quality Connections
Your employees, like most people, will generally associate with like-minded individuals. If your employees have proven to be effective, successful and culturally sound, it’s very likely that they associate with other individuals that could bring more value to your company. Their connections offer a great source of untapped potential in your hiring efforts.
4 Benefits of an Engaged Employee Base
Put simply, engaged employees are just better. They’re more productive, and they’re more willing to work harder and longer to get the job done. They care about your company because they feel like they’re a part of its success.
When it comes to the bottom line, engagement should remain top-of-mind. Disengagement is synonymous with disinterested and uninvolved, and that can be expensive. It costs the American economy up to $350 billion each year in lost productivity. Add in the costs of replacing disengaged employees (hiring, onboarding and training), and engagement begins to make a lot of cents…er, sense.
Here are a few reasons why you should make employee engagement a priority in your business:
Improved Recruiting – Engaged employees are more likely to tell others that their company is hiring. They feel valued by their employer, and that’s a feeling that’s worth sharing.
Reduced Turnover – Engaged employees are less likely to leave their current jobs. They find satisfaction and fulfillment in their jobs, which increases both security and loyalty.
Increased Profits – Engaged employees are more cost effective. Because they feel valued, they look for value and are more likely to find cost-saving alternatives within their work.
Enhanced Creativity – Engaged employees are more innovative. They don’t just go through the motions when they come to work because they want to get the job done in the best way possible.